Twitter is evicting two executives and is no longer hiring new staff. In the near future, the company will also cut costs on, among other things, travel. This was announced by CEO Parag Agrawal in an email to employees of the social media company bought by billionaire Elon Musk. That acquisition has not yet been completed.
According to Agrawal, global events, including the war in Ukraine, have hurt Twitter’s results. “At the beginning of the pandemic, the decision was made to invest aggressively to achieve major growth in audience and revenue,” said Agrawal. Twitter initially targeted $7.5 billion in annual revenue and 315 million daily users by the end of 2023, but withdrew those targets in its recent earnings report. According to Agrawal, Twitter is not on track to achieve those goals.
Dismissal of executives
The company does not plan to cut jobs on a large scale. However, two executives will leave the company, the Twitter CEO reports. Kayvon Beykpour, who led the consumer division, and Bruce Falck, who oversaw revenue, both tweeted today that they are not leaving of their own accord. “Parag asked me to leave after letting me know he wants to move the team in a different direction,” Beykpour wrote on Twitter. He added that he was still on paternity leave. “I will clarify that I too was fired by (Parag),” Falck tweeted.
Twitter will also pause most hires and scrutinize all open positions to determine if they should be withdrawn.
It will cost Musk $44 billion (about 42 million euros) to take Twitter off the stock market in its entirety. The board of Twitter has agreed to this, but the shareholders have yet to agree. Musk is still talking to investors about his plans to convince them.
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